It is instructive that Professor Rogoff cites Harmston. The value of gold is more discussed than the value of bread but there is no doubt which one is the more important and it is not the value of the mineral. Malthusian limits will devalue gold in the long run.

It WAS hard to argue that investors need gold as a hedge against high inflation and it remains so.
I doubt that small inverstors are "unload"ing gold, most likely they are sticking to them rather than realizing and admitting the loss.

Like any other commodity, gold has costs Its price may vary depending on many factors. The question is whether the gold to act as a special commodity, the universal equivalent, the universal measure of value in today's economy .. Judging by the scale of its price fluctuations, it can not perform this function. You can not enter twice into the same river. The era of gold as a special commodity completed. Formation of a new financial system is just beginning. It will appear as a result of the development process. A tool of this process is a systematic global crisis. ( http://crisismir.com/analiticheskie-materialy/ekonomika/13-mirovoj-ekonomicheskij-krizis-prichiny-i-posledstviya-quo-vadis.html )

It is instructive that Professor Rogoff cites Harmston. The value of gold is more discussed than the value of bread but there is no doubt which one is the more important and it is not the value of the mineral. Malthusian limits will devalue gold in the long run.

If one tracks the Gold Price surge and its current downhill trend, it almost coincides with banks offloading their financial products in the wake of the crisis and the current return of the same when things have settled down. The replacement of financial products with Gold by the banks is one more example of how banks are adding to the speculative demand of a commodity as a second fiddle to their normal products on offer. This is true for Aluminum as well, and could be true for a basket of commodities.

Procyon: There is nothing speculative about the gold movement, just think a bit. Gold was/is regarded has a safe harbor for inflation, so its normal for the demand of gold to increase in the inflation expectations are high due to all the fuss about QE, the moment reality proved the Austrians wrong, Inflation remained low, and we could see that QE was causing no inflation, then demand for gold diminished pushing gold prices down.

This is just common sense, and on empirical evidence that inflationistas are wrong, they just son't wan't to admit to that.

surprise surprise ..I waiting something different .
Q ..who make grade the gold price ? $ ,euro, y ?
with what logic can someone say TO DAY Gold is ---up
tomorrow ----down so this variable from one day to other is SO unstable ?
the game is like this ..but the physical Gold never use the value ..
thank you
1 ton is one ton
1 kg is 1 kg ..no one can change ..just exchange move the volume ..

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